Today, it’s easier than ever to shop online with just a few touches on your smartphone. Not only is ecommerce a crowd favorite, but it intersects with the most popular social media trends of 2023.
Analysts predict US ecommerce sales to increase from the current 23% of retail sales to 31% by 2026. Brick and mortar stores aren’t going away, but modern consumers have more items on their shopping list for preferred brands online. Along with choice and convenience, consumers are concerned about price, brands who align with their values—and that’s just the beginning.
Marketers with sophisticated social presences and ecommerce managers need to keep up with the latest ecommerce trends because consumer behavior is constantly evolving. Product launches no longer take place solely in the physical space. The digital one is just as, if not more, important.
Let’s take a look at the top ecommerce trends you need to know about in 2023:
- Accelerated use of mobile shopping
- Social commerce continues to grow and evolve
- Personalization is a preferred shopping experience
- Artificial Intelligence will help brands learn more about shoppers
- Zero-party data and privacy are on consumers’ minds
- AR and VR enhance online shopping experiences
- A rise in voice search
- Businesses focus on optimizing for conversion
- Subscriptions help retain loyal customers
- Consumers are choosing brands that align with their beliefs
- Consumers are increasingly mindful of sustainability
- Livestream shopping
- Conversational marketing
1. Accelerated use of mobile shopping
Mobile commerce is more than simply using your phone to buy items. It includes any purchasing activity (engagement with mobile ads, speaking with sales reps, browsing brands on a smartphone, etc) made on a mobile browser or app. And since mobile shopping intersects with other trending ecommerce features like live stream shopping, augmented reality shopping and in-app purchases, we predict its use will accelerate in 2023.
How to act on this:
- Consider your current mobile shopping offerings and experiment with trending commerce features.
- Pay attention to new ecommerce product features to stay ahead.
2. Social commerce continues to grow and evolve
Social commerce reigned supreme in 2022. But consumers’ wants are becoming more complex and they’re more selective with their purchase decisions, especially in a looming economic downturn.
Sprout’s social shopping report found 98% of consumers planned to make at least one purchase through social shopping or influencer commerce in 2022—and this trend isn’t slowing down. If you haven’t already started selling on social media, chances are high that your competitors already are or are planning to.
With the maturing of creator marketing, the natural next step is for platforms to help creators and companies sell to consumers.
Grove Collaborative utilizes Instagram Shop to offer customers a unique browsing experience and the ability to check out within the app. Along with photos, they include tutorial videos to illustrate how to use their products. Users can also send a direct message to Grove Collaborative if they have a question.
Why make someone leave Instagram if they can just click on a product tag and purchase something in less than a minute? In the buyer journey, it’s one less click for customers and that’s one less chance for them to abandon the cart.
In our Q1 2023 Sprout Pulse survey, 47% of consumers say they plan to use shopping features within a platform (Instagram Shops, Facebook Shops, TikTok Shopping, etc.).
Even across generations, consumers anticipate using in-app shopping features over the next year.
How to act on this:
- Consider implementing new in-app shopping features on social media.
- Meet your customers where they are. Which social shopping platform or feature do they engage with the most?
- Reward social shoppers with exclusive in-app discounts and sales.
3. Personalization is a preferred shopping experience
B2C and B2B consumers alike are seeking custom ecommerce experiences and are more likely to remain loyal to retail brands that offer a personalized experience. According to the State of Personalization 2022, almost half (49%) of consumers say they will likely become a repeat buyer after a personalized shopping experience with a retailer.
Personalization can include product recommendations, offers and discounts and a cohesive retail experience across multiple channels (website, mobile and social). It can also include offering a variety of payment methods. If customers have a preferred payment method and it’s not available, they could easily abandon the website without completing their purchase.
Brands that are expanding their personalization efforts are reaping benefits. According to BCG’s Personalization Maturity Index, retailers that scale advanced personalization capabilities earn on average four times the revenue compared to those with less advanced features.
How to act on this:
- Scale personalization efforts by offering product recommendations and exclusive offers.
- Consider offering modern payment methods, like Apple Pay, or buy now, pay later services like Klarna.
- Prioritize improving customer care across your social media channels.
4. Artificial Intelligence will help brands learn more about shoppers
With the rise of custom shopping experiences, artificial intelligence (AI) is growing quickly. AI can collect data on customers’ shopping behaviors. This can include how a customer shops, their preferences when browsing for a product/service and time of purchase. Brands can use this information to offer a personalized shopping experience.
It’s like your favorite sales associate, but with a techy twist. Instead of your favorite associate, AI can show a new shoe you might like or share details about relevant upcoming sales.
You may be familiar with the science fiction trope of an AI robot learning how to express human emotions. Well, we are not quite there yet—and perhaps we never will be.
But more practical use cases for AI and customer service are emerging. While not every AI scenario goes well, companies have tapped on AI to compose responses for more practical customer care engagements like searching for an item status. Using AI will improve efficiencies as customer paths are projected to become more complex over time.
As a bot learns how to communicate better, brands can also teach them how to provide more complex customer service, along with offering products based on a customer’s moods and preferences.
How to act on this:
- Research best use cases for AI ecommerce.
- Experiment with AI tools to get a hands-on learning experience.
- Pay attention to industry news surrounding artificial intelligence and machine learning.
5. Zero-party data and privacy are on consumers’ minds
While some consumers want a personalized experience, others are concerned about their data and privacy rights. More consumers are aware that ecommerce sites collect data, but they don’t always know how this data will be used or whether the collection puts them at risk. There are mixed sentiments about the benefits of big data and how it impacts personalized shopping experiences.
In light of top companies like Google planning to end the support of third-party cookies in 2023, brands are beginning to adopt zero-party data. Collecting data directly from consenting customers is an attempt to avoid the issues that come with using third-party cookies.
Our Q1 2023 Sprout Pulse survey shows 63% of consumers are concerned about zero-party data while shopping online.
However, our Pulse survey also revealed over half (55%) of consumers are okay with brands using their personal information to deliver relevant content and offers, or if the recommendation aligns with their identity.
With the future moving toward zero-party data, marketers will have to learn how to balance the interesting dichotomy between personalization and data/privacy concerns.
How to act on this:
- Consider adopting zero-party data and collect customer data in-house.
- Identify and implement the appropriate security and privacy protocols to protect your customer data.
- Be transparent with customers about how your brand collects, stores and uses their data.
6. AR and VR enhance online shopping experiences
Our Q1 2023 Pulse survey revealed 48% of marketers anticipate using Virtual Reality (VR), Augmented Reality (AR) or Extended Reality (XR) technologies like the metaverse. Some 43% of consumers say VR/AR/XR will play a significant role in how they engage with brands over the next 12 months.
“Try before you buy” takes on a whole new meaning with augmented reality (AR) commerce, which uses 3D mapping to help customers try out products or preview experiences before making a purchase. AR has been a game changer across industries, especially fashion, beauty and home decor because it brings the product/service within the fingertips of customers. Brands don’t even need brick-and-mortar storefronts to take advantage of AR commerce.
A few advantages of AR ecommerce include:
- Customers can get a feel for a product without seeing it physically in person
- Helps customers who don’t have access to a store nearby due to time or proximity
- Since customers can preview products and experiences without purchasing, their purchase decisions are more informed, leading to fewer returns
- Offers consumers the ability to test on their own time, making this marketing and sales channel cost-effective
Some examples of AR ecommerce include virtually trying on glasses frames, placing a piece of furniture in a room to see how it’ll look and applying various makeup products to see what compliments your skin tone.
Within its iOS app, Target uses AR to improve the customer shopping experience. Common furniture items are able to be superimposed into customers’ spaces so they can actually picture how they’ll look. If customers are able to see how well a leather armchair fits into their living room, they’re more confident in their purchasing decision and less likely to return the item.
How to act on this:
- Consider investing in AR ecommerce features through your brand’s app or an AR app like Snapchat.
- Showcase how customers can use your brand’s AR offerings on social media.
7. A rise in voice search
In 2023, marketers are using emerging technologies like voice search to level up their social commerce strategies. Many consumers rely on smart speakers and voice assistants to complete daily tasks. Customers can explore a brand’s various collections, choose product sizes and colors and ask questions directly within their shop.
As more people adopt these systems, they will likely start using voice search to make purchases from clothing to food.
According to our Q1 2023 Pulse survey, 25% of respondents say they plan to use voice search in 2023, a 3% increase from 2022.
How to act on this:
- Optimize voice search by using traditional search engine optimization and semantic strategy
- Optimize product/service descriptions for search using natural speech like “who,” “what,” “where,” “why,” “when,” and “how”
8. Businesses focus on optimizing for conversion
In today’s economic landscape, consumers are spending less and less often. According to Shopify’s The Future of Ecommerce + Trends 2022 report, in a survey of global Shopify Plus merchants, 35% have seen shrinking average cart sizes, and 50% are seeing less site traffic and lower conversion rates.
With so many brands embracing multichannel marketing, marketers need to focus on optimizing for conversion on social media and search engine advertising. Gone are the days of identical messaging across traditional channels like billboards and postcards. Today, companies have to craft a cohesive brand presence while curating the appropriate messaging and content across various social channels.
How to act on this:
- Prioritize customer care across your brand’s channels.
- Include a call to action link or button in content.
- Showcase testimonials and reviews across your channels.
9. Subscriptions help retain loyal customers
Brands are adopting subscription models to attract loyal customers while boosting profitability and retention rates. Subscriptions and/or memberships are becoming more popular due to economic instability and inflation.
B2C brands in particular are marketing subscription plans as an opportunity to save money, some even promising lifetime price rates as a registration incentive. Gated membership communities like Fabletics and Lululemon are rising as well. The model leans on FOMO, offering members VIP-style treatment with exclusive access to products, events, etc.
Got my @lululemon yoga mat & I’m so excited for yoga tomorrow! I told myself that if I went to yoga consistently for the month and used my unlimited subscription, I’d treat myself and voila 😌 pic.twitter.com/wQOho8QbCP
— AmandaLeigha† (@amandaleigha) August 2, 2021
These benefits are so attractive to customers that Lululemon expects 80% of customers to sign up for membership within the next five years, according to Shopify’s The Future of Ecommerce + Trends 2022 report. Lululemon also stands out because of how they promote their subscription and community. The athletic apparel retailer frequently interacts with customers on social, sometimes even surprising and delighting their customers with subscriptions.
Thank you @lululemon for the gift!! I will definitely be using these flashcards & the meditation subscription : ) pic.twitter.com/HqSBNpPrAF
— Kerri Lynn (@kerri_0011) December 20, 2015
How to act on this:
- Reward subscribers with limited-time offers.
- Market the benefits of your subscription service.
- Engage with subscribers online to shape a sense of community.
10. Consumers are choosing brands that align with their beliefs
Consumers want to spend their dollars on brands that align with their beliefs. Our Q1 2023 Pulse survey reveals aligned values are a top priority for many consumers. They want to spend their dollars on brands that don’t just talk the talk, but walk it too.
For example, if an ecommerce brand values environmentalism, they could allow consumers the option to minimize the number of shipments an order is sent in. Beauty and apparel brands that champion diversity, equity and inclusion are expected to feature diverse models and offer inclusive sizing or foundation shades.
Our Pulse survey shows 77% of consumers are more likely to increase their spending with brands they feel connected to, a 57% increase from our 2018 Brands Get Real report.
Our Pulse survey also showed, across generations, consumers are more likely to spend on brands they feel the most connected to.
How to act on this:
- Get creative with how you showcase your brand values.
- Collaborate with like-minded businesses, content creators and influencers.
11. Consumers are increasingly mindful of sustainability
Staying true to the trend of consumers choosing brands that align with their beliefs, sustainability is becoming an important staple to shoppers. With factors like the environmental implications of fast fashion and emerging technologies like NFTs (which are known for having large carbon footprints), many consumers are becoming more aware of sustainability.
Consumers are looking for sustainable packing, pivoting from plastic and paying attention to brands’ environmental activism efforts.
How to act on this:
- Evaluate how your brand can embrace sustainable business practices.
- Consider how your product or service can be more eco-friendly.
12. Livestream shopping
Livestream shopping allows consumers to enjoy the best of social commerce and live streaming. Brands, influencers and creators can promote products/services while interacting with customers in real time. The experience is similar to shopping in a store with associates answering questions, but now it’s from the comfort of home.
Some 49% of consumers plan on watching live streams in 2023, according to our Q1 2023 Sprout Pulse survey.
Even traditional television shopping networks like QVC are embracing livestream shopping. Viewers can tune in via Facebook, Youtube and the QVC streaming app.
13. Conversational marketing
Imagine a customer starts a conversation with your brand on Facebook Messenger.
With the help of a chatbot or a live agent, the customer can get answers to their questions about your product/service. And they can even complete a purchase without leaving the platform. Conversational commerce is a lot more personalized and interactive on a one-on-one basis.
Our Q1 2023 Sprout Pulse survey reveals, some 26% of marketers plan to use conversational marketing in 2023, a 6% increase from 2022.
On top of text-based conversational commerce is voice shopping, like we mentioned before. Having a natural conversation with your Amazon Echo or Google Home that leads to a purchase is another example of conversational commerce.
Next steps for marketers
- Consider optimizing conversational marketing efforts for conversion, like chatbot call to action prompts or using live agents with chatbots.
- Implement chatbots on your brand’s website and social messaging platforms.
Evolve your emerging social commerce strategy
Keep an eye on these emerging ecommerce trends over the next year. New technology is helping ensure smoother customer journeys and a better brand experience, helping both the customer and the company.
Get ahead of the latest ecommerce trends with our social commerce strategy tool.
The post 13 Ecommerce trends you need to know in 2023 appeared first on Sprout Social.
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